Dear Rechungpa,

The following is the Company’s response to your inquiry.

The Silvana and Wonderful mines are producing ore at the same time as we continue rehabilitation work and further diamond drilling underground. The Hinckley mine was rehabilitated over the past winter with mining scheduled to begin there shortly. Our objective continues to bring the mill up to its 100 ton per day capacity.

As previously reported, a 3000 ton bulk sample of ore from our Stump property running at 40% lead and 40 oz. silver per ton is scheduled for delivery to Sandon beginning in mid-July, the time dependant only on the spring ground conditions in the Yukon. This rich ore will be mixed with the local ore to produce the best concentrate possible.

We are presently in discussion with the smelter at Trail for a booking date to ship our concentrate to them. The booking date has not been finalized as it is dependant on the overall delivery schedule of concentrate to the smelter from a variety of sources throughout North America. We do however expect to begin shipping our concentrate presently on inventory within a short period of time.

Regards,
AGORACOM